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U.S. Mobile Services Buying Criteria Explored

U.S. consumer mobile services buying decisions are proven to be based upon interest, technology adoption attitudes, lifestyle attributes and of course price. However, not necessarily in that order.

Understanding these buying criteria is essential in assessing the market potential for IP Multimedia Subsystem (IMS)/Next Generation Networking (NGN) consumer products and services, says high-tech market research firm, In-Stat.

IMS-based enabling features and functions, such as presence and user profiles, build a foundation on which numerous other applications can reside. In-Stat research has confirmed that there is high interest across all household segments for most enabling IMS/NGN technologies and their associated user benefits.

"In-Stat recommends that service providers focus on deploying enabling technologies to accelerate consumer adoption and build demand for next-generation IMS-based communication services," says Keith Nissen, In-Stat analyst. "Stand-alone applications, such as mobile TV, may receive more hype, but will hold far less market potential."

Recent research by In-Stat found the following:

- Mapping applications have the potential to generate $1.5 billion annually in the U.S. market.

- IMS basic network functionality in the U.S. can generate over $1 billion in annual revenue.

- Success of mobile TV will depend on changing consumer behavior, similar to mobile voice.

Clearly, there's a need for further research that uncovers the potential for market demand, and revenue creation, related to new capabilities that result from these service delivery platform deployments. Most of the research to date is focused on the service provider's IT infrastructure cost-saving benefits associated with an IMS/NGN investment.

Other constituencies in the value chain -- such as semiconductor, device and multimedia content companies -- also would benefit from additional substantive research that clearly articulates the apparent consumer and enterprise interest in service applications. To date, the limited application insights has biased most analyst opinion -- unfortunately, towards the downside.

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